Rescission and termination of labour contracts, and economic compensation

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If the employer and the employee reach an agreement through consultation, their labour contract may be terminated. In absence of such an agreement, the employee is entitled to unilaterally terminate the labour contract under the following conditions/circumstances: when notifying the employer in writing 30 days in advance; when notifying the employer three days in advance during the probationary period; due to some fault of the employer (e.g. failing to pay the employee remuneration on time and/or in full, failing to pay social insurance premiums for the employee in accordance with laws, etc.). The unilateral termination of the labour contract by the employer is subject to stricter conditions and must meet certain legal prerequisites, for example, if the employee is proved to have failed to meet the conditions of employment during the probationary period, due to some major fault of the employee, if the employee is laid off due to economic reasons of the employer, etc.

The labour contract is terminated when the labour contract expires, the employee begins to enjoy basic endowment insurance in accordance with laws, or the employer decides to disband.

Economic compensation shall be paid if the employer proposes to terminate the labour contract through negotiations with the employee, or cancels or terminates the labour contract due to legal circumstances, such as the employee's disqualification or layoffs for economic reasons. Economic compensation shall be paid to the employee based on the number of years the employee has worked for the employer in the amount of one month's salary per year employed. If the emplyee has been employed for less than a year but more than six months, the employer shall still pay the employee one month of salary; if the employee has been employed for less than six months, the employer shall pay the employee the equivalent of a half of a month's salary.